Spider (SPDR), which tracks the S&P 500 index and trades under the symbol SPY QQQQ, this ETF represents the Nasdaq-100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq, QQQQ offers broad exposure to the tech sector.

Investor get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share.

Types of ETFs

Index ETFs – Tracks performance of index by holding its portfolio sample of the securities in the index